Ecuador will temporarily reduce its value-added tax (VAT) from 15% to 8% in the provinces of Carchi and Imbabura, and in the Cayambe and Pedro Moncayo cantons of Pichincha Province during the Nov. 1–4 national holiday, the government said Wednesday.
The measure, set out in Executive Decree No. 196 signed by President Daniel Noboa, applies to services classified as tourism activities under the country’s Tourism Law. Businesses in the affected areas must issue invoices reflecting the lower rate.
According to the decree, the tax cut seeks to revive local economies in regions hit by protests and roadblocks during the September–October national strike that caused millions in losses to the tourism sector.